Intel receives $7.86bn CHIPS Act funding to boost US chipmaking dominance

Intel Corporation has secured up to $7.86 billion in funding under the U.S. CHIPS and Science Act, marking a significant leap forward in domestic semiconductor production. This strategic investment, facilitated by the Biden-Harris Administration and the U.S. Department of Commerce, will fuel Intel’s ongoing projects in Arizona, New Mexico, Ohio, and Oregon, solidifying the nation’s leadership in cutting-edge chip technology.

The funding forms part of a broader initiative aimed at rebuilding a resilient and secure semiconductor supply chain within the United States. Additionally, Intel plans to leverage the U.S. Treasury Department’s Investment Tax Credit, expected to offset 25% of qualified investments exceeding $100 billion.

Pat Gelsinger, Chief Executive Officer of Intel Corporation, highlighted the pivotal nature of these investments, expressing that bipartisan efforts have enabled historic financial support for the sector. Gelsinger noted that Intel’s advanced technologies, such as Intel 3 and the forthcoming Intel 18A, are now being developed on U.S. soil, aligning with national security and economic imperatives.

Transformative impact of CHIPS Act funding on semiconductor manufacturing

The CHIPS Act has catalysed unprecedented growth within the semiconductor sector, with Intel positioned as a key player in restoring American technological preeminence. Since the Act’s passage over two years ago, Intel has committed to over $100 billion in U.S. investments. These efforts are expected to enhance supply chain resilience, spur research and development, and create tens of thousands of jobs across the nation.

U.S. Secretary of Commerce Gina Raimondo stated that the CHIPS for America initiative underscores the administration’s commitment to innovation and national security. She praised Intel’s contributions to the semiconductor industry’s resurgence, noting that the funding represents one of the largest financial boosts to chipmaking in U.S. history.

Building a robust semiconductor network across the US

The funding will directly support Intel’s operations at several critical locations, each playing a unique role in the company’s semiconductor ecosystem. Arizona leads as a major manufacturing hub, New Mexico specialises in advanced packaging technologies, Ohio serves as a newly established production centre, and Oregon remains a focal point for Intel’s research and development.

These investments aim to advance domestic chip production, secure the supply chain, and foster innovation, ensuring that America retains its edge in the global semiconductor race.

Intel’s commitment to advancing chip technology

Intel’s technological roadmap reflects its ambitions to reclaim leadership in semiconductor innovation. The company is on track to launch Intel 18A, its fifth process node in just four years, by 2025. Collaborations with major clients, such as Amazon Web Services, further highlight Intel’s momentum. Recent agreements include a custom Intel Xeon chip built on Intel 3 and a new AI-focused chip on Intel 18A technology.

Further bolstering its capabilities, Intel has achieved a significant milestone with the installation of the industry’s first High Numerical Aperture Extreme Ultraviolet lithography scanner. This technology, now operational at Intel’s Hillsboro, Oregon site, represents a critical advancement in next-generation semiconductor manufacturing.

The company’s relationship with the U.S. government has also deepened through programs like the Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) and State-of-the-Art Heterogeneous Integrated Packaging (SHIP). These collaborations include a $3 billion contract for the Secure Enclave program, aimed at expanding trusted manufacturing capacities.

Securing America’s semiconductor future

Intel’s $7.86 billion funding marks a watershed moment for U.S. semiconductor manufacturing. With robust investments in facilities, groundbreaking technologies, and strategic partnerships, the company is driving the resurgence of American chipmaking capabilities. As global demand for semiconductors continues to soar, Intel’s leadership will be instrumental in ensuring the nation’s technological and economic security.